UK Trade Tariffs Could be cut if there is No Brexit Deal

The
possibility of a chaotic ‘no deal’ Brexit is looming large for
the United Kingdom as Prime Minister Theresa May struggles to get the
deal through the Parliament. It seems the government is already
preparing for the worst. According to a report by the BBC, the UK
government will cut tariffs significantly for a majority of goods if
the nation exits the European Union without a deal in place.

It
could prove to be a bit of a catastrophe for local businesses in the
country, but at the same time, the country faces a ruinous trade
environment if a deal is not pushed through by 29th
March. However, it should be noted that there is speculation that the
deadline is going to be extended if a deal is not agreed on time. It
is being reported that around 80% to 90% of goods that are imported
into the country could be the beneficiaries of the said trade tariff
cuts. However, some industries in the UK like textiles, dairy and car
parts among others are protected, and such goods are not going to be
included in this initiative.

The
Business Secretary of the UK Greg Clark stated that the tariff rates
are set to be published, but it will only be done after PM May’s
Brexit deal vote has been concluded at the House of Commons. He also
spoke about some specific industries that could benefit from these
tariff cuts and singled out the ceramics industry. Speaking on a
radio programme, Clark said, “We have been consulting with
different industry sectors on this. It has big implications for
different sectors. Ceramics is an industry that I know very well. It
has been subject to very unfair competition, to the dumping of very
cheap ceramic exports from the Far East, from China.” He went on
to add that the tariff rates have been finalised with a no deal
Brexit in mind and the goal behind the new rates is to protect the
interests of businesses as well as consumers.

The
economics correspondent at BBC, Dharshini David said, “While areas
such as farming would benefit from the protection of tariffs,
dropping them elsewhere would leave other UK businesses disadvantaged
relative to their European competitors. That may weigh on
politicians’ minds, as the Prime Minister tries to rustle up
last-minute support for her deal.” She went on to add that it would
be a highly courageous move from the government to slash import
tariffs and would signal to the world that the UK remains friendly to
businesses despite a no deal Brexit.

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